Logistics Management Practices and Performance of Alcoholic Beverage Manufacturing Companies in Kenya.

Alcoholic beverage manufacturing companies in Kenya operate in an increasingly uncertain environment characterized by intense competition, rising input costs, high excise taxes, the proliferation of illicit alcohol and growing pressure to reduce the environmental impact of their operations. Logistics management practices have emerged as an important approach through which manufacturers can lower costs, improve delivery and meet sustainability expectations. However, many firms continue to face transportation inefficiencies, weak inventory and returns systems and limited adoption of technology, which constrain their performance. Therefore, the purpose of this study was to establish the influence of logistics management practices on the performance of alcoholic beverage manufacturing companies in Kenya. It examined four practices, namely green transportation, green warehousing, eco-packaging and reverse logistics. The study was anchored on the Stakeholder Theory, Resource-Based View, Circular Economy Theory and Transaction Cost Economics Theory. A cross-sectional survey design was adopted, targeting the 60 alcoholic beverage manufacturing companies listed by the Kenya Association of Manufacturers in 2024, with logistics managers, procurement officers and storekeepers as the units of observation. A sample of 123 respondents was determined using the Yamane formula and selected through stratified random sampling. Primary data were collected using a self-administered structured questionnaire, which was pilot tested on 12 respondents; all Cronbach’s alpha coefficients exceeded 0.70. Data were analysed using SPSS version 28 through descriptive statistics, Pearson correlation and multiple regression analysis. A total of 100 questionnaires were returned, a response rate of 81.3%. The findings revealed that the four practices jointly explained 50.4% of the variation in performance. Eco-packaging had the strongest influence on performance, followed by green transportation, green warehousing and reverse logistics, all of which were positive and statistically significant. The study concluded that logistics management practices are significant drivers of the performance of alcoholic beverage manufacturing companies in Kenya. The study therefore recommends that firms should adopt route optimization software and real-time fleet tracking to reduce transportation costs and emissions; strengthen warehouse management systems, data connectivity and waste recycling in warehouses; expand bulk shipping and low life-cycle-impact packaging materials; and institutionalize systematic, technology-supported returns processes, clear refund and exchange policies and regular review of unsold stock.